From checking product information to making payments, you must have seen a barcode while at a store or shopping online. But, most people do not know the use and importance of barcode technology in inventory tracking and management in the backend. Robust inventory management is the foundation of any successful e-commerce business, whether a large enterprise or a start-up. Unlike traditional retail inventory, where only one channel is used for sales, understanding and managing the supply chain of an e-commerce business can get a little more complicated. 

If you run an e-commerce business, you'd have products hosted in a warehouse of your own or provided via a third-party logistics company (3PL) or housed in a separate company and bought through dropshipping. Also, most brands today use numerous channels to sell their products, from e-commerce storefronts to social media and different marketplaces. Hence, it becomes critical to match the inventory numbers across all channels. Since managing all this is not easy, a weak inventory tracking system will only make things worse. A barcode-based inventory management system is the most effective solution to help e-commerce business owners effortlessly manage inventory, reduce costs and time, and thus, make more informed decisions. 

Let's discuss how to use barcodes to track inventory for an e-commerce business. 

Making the Most of Barcode Inventory Software 

Barcodes make inventory tracking easier and faster. Take a look at how barcodes help streamline inventory operations for your e-commerce business. 

• Real-time Inventory Visibility: Businesses with varied and complex inventory requirements such as e-commerce may lack visibility over their stock. With barcode inventory tracking software, companies can track their inventories in real-time. The inventory staff has complete visibility over every item, from when it is manufactured or received to the point it is shipped to the end-user. 

• Quality Assurance & Traceability: Safety and quality assurance are critical for every business. Barcodes provide tighter safety control and accurate inventory traceability. Good quality and safety control are imperative to recognize and tackle theft or loss of products.  Barcode technology helps identify materials and components that further increase traceability, which is essential in e-commerce. It also adds a level of accountability, starting right from the operator who inspects the part to the machine used in its inspection, the machine that manufactured it, along with the batch number of the material used in producing it. Be it any kind of error or concern, the responsible batch, equipment, employee, or even vendor can be singled out. 

• Equipment Control: With barcodes affixed on all items, the inventory staff doesn't have to struggle to find a product or shipment location. It saves both time and effort and provides the required information quickly. 

Benefits of Inventory Tracking Software 

Inventory management is heavily dependent on barcode technology. With barcode inventory software, it takes a single scan on the barcode reader, and the inventory professionals get access to relevant information in no time. Some of the most important benefits of barcode-based inventory tracking software are listed below. 

• Barcode Technology is Easy to Implement and Use: One of the best things about barcode technology is that it is easy to implement and use. You don't need to have a particular degree to use inventory tracking software. Manually keying in all the Stock Keeping Unit (SKU) number of thousands of items is a challenging process. When all inventory items have barcode labels, a barcode reader can be used to scan the code and fetch the real-time information quickly. 

• It is Cost-Effective: Unlike most modern technologies, barcodes are very much cost-effective. Be it generating barcodes for your e-commerce business or printing the labels, implementing barcode inventory software doesn't cost much high. Today, companies don't necessarily have to invest in handheld barcode scanners as a smartphone can efficiently function as a mobile barcode reader. By choosing an industry-grade barcode scanner SDK, you can embed barcode reading functionality in a web, mobile, or desktop app. Not to mention, it will save training time and labor costs in the long run. 

• Barcodes Reduce Chances of Error: Manually entering and verifying data is an error-prone process. Barcode inventory software reduces the chances of errors. In fact, according to a study, when using a barcode reader, only one error is made for every 10,000 scans compared to 10 errors for 1,000 keystrokes. With a single mistake being made in the front-end, a shipment can get delayed for days and make product tracking difficult for the employees. 

• Inventory Tracking with Barcodes Saves Time: Manually searching for an item on a register or spreadsheet is a time taking task. By choosing barcode technology, you can automate inventory operations and save a significant amount of time. All it takes is a single scan through a barcode reader, and you can get access to all the information you are looking for. 

• Barcode Technology provides Security: Mistakes and mix-ups of products are not just an inconvenience for your customers but also harmful, especially in the healthcare and pharmaceutical industry. Barcode technology eliminates these problems. Barcodes are fully auditable and traceable. Hence, it reduces liability and loss. 

Choosing the Best Barcode Reader for Quick and Accurate Results 

The market is filled with a wide variety of barcode readers. From handheld barcode scanners to free barcode reader apps, it may become a little tricky to decide which one to choose. Out of all the options available out there, the best option is to select a barcode reader SDK to embed barcode scanning functionality in desktop, mobile, or web apps. This way, you don't have to invest in handheld barcode scanners as smartphones or mobile devices can be converted into barcode readers. It gives the inventory professionals mobility and ease of access. Also, most barcode reader SDKs are very fast and provide accurate results. The leading ones can scan more than 500 barcodes in a minute. 

You should also check what barcode symbologies the barcode scanner SDK supports. Does it work under challenging environments and read tough barcodes? Choose the one that offers all these features. Also, don't forget to try before you make a purchase.